Getting cultural heritage to work for Europe

Report of the Horizon 2020 Expert Group on Cultural Heritage
Research and Innovation
Directorate-General for Research and Innovation Directorate I — Climate Change and Resource Efficiency Unit I3 — Sustainable Management of Natural Resources
Contact: Ekaterini HAMBOURI; Birgit de BOISSEZON
E-mail: [email protected]; [email protected] [email protected] [email protected]
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EUROPEAN COMMISSION
Report of the Horizon 2020 Expert Group on Cultural Heritage
Directorate-General for Research and Innovation
2015
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Cover page image: © Valentina Urli, London docks, 2006. Inside publication: p 11: © Francisco Piqueiro,
Fotografia aérea de Mouzinho/Flores, Porto, 2015; p 11: © European Association of Historic Towns and Regions, Grainger Town, United Kingdom, 'Investing in Heritage', INTERREG III C Project, 2007; p 13: © Theo
Spek, Cultural landscape of Serra da Estrela, Portugal, 2014; p 13: © Theo Spek, Aerial photograph Drentsche
Aa National Landscape, The Netherlands, 2014; p 14: © JCVerchère, Jardin des migrations du Fort St Jean, Marseille, 2013; p 15: © Laurence Adam, Article 27 # Bruxelles, 2014; p 15: © European Association of
Historic Towns and Regions, Escuela Taller, Úbeda, Spain, 'Investing in Heritage', INTERREG III C Project, 2007; p 17: © Fani Mallouchou–Tufano, Van Nelle Factory, #P1010213, #P1010249, 2008; p 18: © P. Simone,
ARPANet SrL, Orvieto Landscape, Italy, 2015; p 18: © Friedrich-Wilhelm-Murnau-Stiftung, 'Das Cabinet des Dr.
Caligari, 1919/20, Decla-Filmgesellschaft, Regie: Robert Wiene, Drehbuch: Carl Meyer, Hans Janowitz'.
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Contents
1. Economy - Promoting innovative finance, investment, governance, management and business models to increase the effectiveness of cultural heritage as an economic
production factor ................................................................................................... 8
2. Society - Promoting the innovative use of cultural heritage to encourage integration, inclusiveness, cohesion, and participation ................................................................. 8
3. Environment - Promoting innovative and sustainable use of cultural heritage to
enable it to realise its full potential contributing to sustainable development of European cultural landscapes and environments........................................................ 9
OUR RECOMMENDED ACTIONS....................................................................................... 10
2. Sustaining Cultural Landscapes ............................................................................. 12
3. Inclusive Governance ........................................................................................... 14
4. Innovative Business Models for cultural heritage ..................................................... 16
ANNEX I: SUMMARY REPORT OF THE WORKSHOP: 'TOWARDS A NEW EU AGENDA FOR CULTURAL HERITAGE RESEARCH AND INNOVATION'; 27 NOVEMBER, 2014 .......... I
ANNEX II: THE HORIZON 2020 EXPERT GROUP ON CULTURAL HERITAGE ........................... III
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EXECUTIVE SUMMARY
Cultural heritage is a significant force for 21st century Europe. Not only is it at the heart of what it
means to be European, it is being discovered by both governments and citizens as a means of improving economic performance, people’s lives and living environments.
Cultural heritage is increasingly regarded as a positive contributor to European GDP. Indeed
Cultural heritage is now widely appreciated as an essential part of Europe’s underlying socio- economic, cultural and natural capital. This is a significant change in focus as cultural activities
have traditionally been regarded as costs to society.
The economic benefits of cultural heritage have most commonly been seen in terms of tourism, but it is now also seen as an innovative stimulant for growth and employment in a wide range of
traditional and new industries. It is also to be recognised as major contributor to social cohesion
and engagement as a way of bringing together communities and stimulating young people to
engage with their environment. Many countries have successfully exploited these benefits, generating prosperity, bringing new jobs and creating improved environments. This report gives
some concrete examples of how cultural heritage has been a production factor in local and national
economies.
Yet this positive experience of cultural heritage is not yet universal. In many places, both urban
and rural, rich cultural assets have not been recognised for the potential they hold to regenerate
and renew. Getting Cultural Heritage to Work for Europe argues that the European Union should vigorously promote the innovative use of cultural heritage for economic growth and jobs, social
cohesion and environmental sustainability.
The report suggests that lessons should be learnt from places where cultural heritage has been a positive economic, social and environmental driver. Innovative financing, new forms of
governance, unified landscape management, public private partnerships, crowd-sourced funding,
philanthropy and many other innovative and creative approaches have been taken to releasing the locked-up potential of Europe’s heritage. Those lessons should be applied to unlock the possibilities
for growth and development that cultural heritage holds across Europe.
The authors believe that the evidence demonstrates that relatively modest investment in cultural
heritage can pay substantial dividends. These can be taken economically but also in terms of improving environmental sustainability and social cohesion.
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THE CULTURAL HERITAGE OF EUROPE
Interest in, and support for, cultural heritage is changing. Two centuries of discussion and debate
about collecting and conservation has led to a broad consensus in favour of preserving remains of our past. A passion, no less, exists for collecting historic artefacts, nurturing traditions and
protecting historic places. This enthusiasm has moved far beyond the traditional boundaries of the
monument and the museum case to embrace intangible heritage and cultural and natural landscapes and ecosystems. Though each European nation has its own traditions, approaches and
laws this has left the continent, as a whole, with some of the richest cultural heritage in the world.
Many now regard cultural heritage, not as a luxury, but as a vital resource for citizens and a key part of Europe's competitive advantage with the rest of the world. Europe offers something that, in
terms of living and working environments and tourism, is envied world-wide.
This report considers the contribution that innovative use of cultural heritage can make to a
smarter, more inclusive and more sustainable Europe now and in the future.
THE CONTRIBUTION OF CULTURAL HERITAGE
In terms of economic policy, cultural heritage has generally been considered as a cost to society; a
financial burden tolerated, principally, as a moral duty. Museums, ancient monuments, historic buildings, parks, gardens and cultural landscapes have been maintained at public cost - as places
that have not, with a few exceptions, directly generated measurable economic advantage.
This assessment of heritage echoes the now outdated view of environmental protection as only an
economic cost factor. It is now generally accepted that environmental neglect can have severe economic and social impacts which outweigh the cost of protection. As a result, environmental
considerations are often mainstreamed into policy and are an integral part of the overall economic
model.
Similarly, in this report we argue that a cost-centred view of cultural heritage is short-sighted.
Cultural heritage must be seen as a special, but integral, component in the production of European
GDP and innovation, its growth process, competitiveness and in the welfare of European society. Like environmental protection, it should be mainstreamed into policy and regarded as a production
factor in economic and wider policy development.
Such a position is in line with the Conclusions of the Council of the EU (Education, Youth, Culture and Sports) adopted unanimously on 20 May 2014 which has underlined that cultural heritage is a
‘strategic resource for a sustainable Europe’.1
It is worth providing some examples that illustrate this important argument. The first, and most
obvious of these, is tourism which owes much of its attractiveness to the rich cultural heritage of Europe, be it in historic towns and cities or in the countryside. Europe is the world's no. 1 tourist
destination and is the third largest socioeconomic activity in the EU, contributing 415 billion Euros
to the EU GDP and employing 15.2m citizens many of whose jobs are linked to heritage.2 It is estimated that there were 253,000 jobs in cultural and natural tourism in the UK in 2011 and that
its combined direct, indirect and induced impact (the amount generated by the sector’s purchases
from other industries and the spend by workers) provided 742,000 jobs in 2014.3
Even in sun & sea areas (not the principal reason for Non-Europeans to visit the continent), the
availability of cultural heritage contributes to a stabilization and diversification of tourism flows,
particularly off-season.
1 Council of the European Union, Conclusions on cultural heritage as a strategic resource for a sustainable Europe, 20 May 2014,
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/educ/142705.pdf. 2 European Commission, Towards an integrated approach to cultural heritage for Europe, COM(2014) 477
final. 3 Oxford Economics (2013) The Economic Impact of UK Heritage Tourism Economy
But tourism alone is a limited view of the positive economic contribution of cultural heritage.
Renovation and maintenance represents more than a quarter of the value of Europe's construction industry.4 It is estimated that repair and maintenance on historic building stock in England
supported 180,000 jobs in 2010. This becomes 500,000 jobs if the indirect effects are included.5
The property values of residences in historic districts out-perform comparable properties in modern developments.6 Businesses tend to locate in these areas, as it is easier to attract specialists and
expats to live and work in such places. The example of knowledge intensive companies who
congregate in culturally rich areas of historic cities is a telling one.7 These businesses, and others,
often seek out historic buildings that can be converted into office space for their headquarters. Cultural heritage thus also enables innovation and enhances the long term competitiveness of the
European economy.
Similar considerations are valid for Europe’s intangible cultural heritage – films, theatre, music and dance as well as craftsmanship and cuisine - which are also important reasons either for tourism
inflows or for exports of services, manufactured goods and produce.
The availability of cultural heritage and services is not only important for its measurable economic benefits. It also enriches the quality of life for European citizens and contributes to their wellbeing,
sense of history, identity and belonging. Such social benefits are beyond what can be measured in
terms of pure income statistics and have been long recognised. As early as the 14th century, the Statutes of independent Italian municipalities attributed to cultural heritage foreign visitors’
happiness and residents’ honour and prosperity, based on beauty, embellishment (decorum),
dignity, public pride and public good (publica utilitas).
The challenges that European society is facing in terms of demographic change, migration and
political disengagement of citizens, especially youngsters and unemployed people, have raised the
question of how citizens can be empowered and better involved in institutional processes. We
believe cultural heritage innovation can transform these challenges into positive outcomes for cohesion and wellbeing as is underlined in the Council conclusions on participatory governance of
cultural heritage8.
Improved cultural education can foster greater unity and cohesion of European citizens, including immigrants, and facilitates democratic engagement. Better understanding of Europe’s cultures and
their interaction with non-European cultures and societies improves inter-cultural dialogue and
mutual understanding.
Lastly, cultural heritage has a decisive role to play in sustainable development. In many places
across Europe, the contribution of cultural heritage to sustainable development has been crucial:
particularly in the regeneration of cities and landscapes. Cities recycling buildings, using historic street-patterns and exploiting historic synergies have improved quality of life and reduced carbon
emissions. In the countryside, more holistic management of the environment, bringing cultural and
natural heritage together in single systems, has resulted in greater efficiencies and improved
quality of life.
4 Key Figures 2014 - activity 2013, Construction in Europe, http://www.fiec.eu/en/library-619/key- figures.aspx
5 Ecorys (2012) The Economic Impact of Maintaining and Repairing Historic Buildings in England. 6 D. Rypkema, Heritage Conservation and Property Values, in: G. Licciardi, R. Amirtahmasebi, The Economics
of Uniqueness, Investing in Historical City Cores and Cultural Heritage Assets for Sustainable Development,
The World Bank, 2012, pp. 107-142; London School of Economics and Political Science An assessment of the effects of conservation areas on value, English Heritage (2012); Investment Property Databank Ltd The
Investment Performance of Listed Offices, English Heritage and RICS(2006); Colliers International Encouraging investment in Heritage at Risk: The investment performance of heritage, English Heritage
(2011). 7 G. Licciardi, R. Amirtahmasebi, The Economics of Uniqueness, Investing in Historical City Cores and Cultural
Heritage Assets for Sustainable Development, The World Bank, 2012, p.xxiv. 8 OJ (2014/C 463/01)
This report argues that the European Union should vigorously promote the innovative use of
cultural heritage for economic growth and jobs, social cohesion and environmental sustainability. It takes three interlinked areas of activity economy, society and environment, where we believe that
a targeted programme of investment will yield considerable benefits. This leads to our three
objectives, which are as follows:
1. Economy: Promoting innovative finance, investment, governance, management and business
models to increase the effectiveness of cultural heritage as an economic production factor
2. Society: Promoting the innovative use of cultural heritage to encourage integration, inclusiveness, cohesion and participation.
3. Environment: Promoting innovative and sustainable use of cultural heritage to enable it to
realise its full potential in contributing to the sustainable development of European landscapes
and environments.
management and business models to increase the effectiveness of cultural
heritage as an economic production factor
Once cultural heritage is regarded as a positive economic driver in the European economy, it
makes sense to involve the private sector more in exploiting its potential. The traditional model
whereby the private sector primarily invests in tourism services and products delivered by hotels,
restaurants and shops, while the public sector focuses on historic buildings, parks and museums, is then put into question - particularly in a period when the public sector does not have adequate
funds to maintain its assets. An alternative approach consists in the private sector getting more
involved in cultural heritage, in order to optimise its use within its own business model. This would build on the potential of historic areas as well as intangible assets to nurture new manufacturing,
service and creative industries attracting investment in the fabric of heritage as well as creating
growth and jobs.
In such a model, the public sector would be called upon to refocus its own approach to cultural
heritage. Rather than considering components like museums as a natural monopoly, it should
incentivise the private sector to get involved, as well, through instruments such as tax breaks, differentiated VAT rates, well designed grant or loan programmes, public private partnerships
(PPP) schemes, rights releases etc. It should generally create more of an environment encouraging
the private sector to invest in cultural heritage.
There have been many examples of projects in areas of rich cultural heritage that have stimulated jobs, apprenticeships, growth and innovation. Some of these have been extremely effective. This
is an area that is little understood on a European level. We propose support for a number of
demonstration projects that could show communities, cities and regions how their cultural heritage can be used to create employment in construction-related industries, cultural and creative
industries and digital and clean technologies.
Likewise, all over Europe, there have been experiments in developing new models of financing for cultural heritage. We are interested, for instance, in those that draw in private investment which
restores and adapts heritage assets, delivering cultural and environmental services in historic
areas. In these models developers are rewarded through risk sharing and taking a proportion of revenues generated. We are also interested in returns on investment that can be generated by
exploiting intangible heritage.
2. Society - Promoting the innovative use of cultural heritage to encourage
integration, inclusiveness, cohesion, and participation
We do not only see innovative governance in terms of business and the state, we also see it in
terms of increased participation by citizens. Cultural heritage has traditionally been identified,
protected and maintained by heritage specialists and/or professional heritage institutions. Although this has brought many benefits it has resulted in a heritage management system in
which local communities often bear little responsibility for their own cultural landscapes,
monuments, collections and intangible heritage.
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At a time when deregulation and decentralisation are policy goals in nearly all European countries,
there are strong arguments for new collective arrangements for heritage and landscape management. These are reinforced by reductions in central budgets for protection and
management of heritage, and the limited capacity of the commercial market to take up the slack.
We also believe that an innovative use of cultural heritage has the potential to actively engage people - thereby helping to secure integration, inclusiveness, social cohesion and sound
investment, all necessary ingredients of smart, sustainable and inclusive growth.
Some important steps have already been taken in this direction. The digitization of cultural
heritage, whilst initially framed by institutions, is now increasingly a collective process involving community access and collective sharing of knowledge. Citizens' engagement in cultural heritage
management and preservation could be further investigated in order to build on the emerging
practice through new investment and the use of digital technologies.
Volunteering is also an important aspect. For an aging population with more leisure time, cultural
heritage offers a major opportunity to engage older citizens, and there is much evidence to
suggest that engaged and motivated citizens stay healthier.
Cultural institutions can also contribute to involving youngsters and unemployed people in cultural
heritage related activities (e.g. renovation projects, museums, community management) in order
to develop their self-confidence and professional skills and enable them to return to the job market even in sectors not related to cultural heritage.
3. Environment - Promoting innovative and sustainable use of cultural
heritage to enable it to realise its full potential contributing to sustainable
development of European cultural landscapes and environments
Cultural heritage plays an important role in the sustainable development of rural and urban
cultural landscapes. These very rarely consist exclusively of natural ecosystems. Instead, they are
made up of a broad range of semi-natural or cultural ecosystems whose diversity has been determined to a large extent by the past management of humans. As a result, many natural and
semi-natural landscapes are teeming with all kinds of cultural heritage, including archaeological
relics, historical landscape features, architecture as well as more intangible values such as
traditions, stories and toponyms.
The research, planning and management of these cultural landscapes have been traditionally split.
Science is often monodisciplinary, policies are mostly single-sectoral and the management of
landscapes shows a strong divide between nature and heritage management. This often leads to miscommunication, inefficient use of resources and loss of cultural and ecological assets.
It is widely recognised that we now need to develop new tools, methods and approaches for
planning and managing these complex dynamic systems. They will need to cover a broad perspective on cultural heritage.
Historians, economists and social scientists have done a lot of research on the management of
common goods, common land and common resources since the 1990’s. These show that common management can actually be very sustainable if it is in accordance with situation-tailored, or
situation-specific types of governance. This leads…